Royal Vopak NV · EURONEXT:VPK
Royal Vopak NV — Q3 2019 Earnings Presentation
26 slides from Royal Vopak NV's earnings presentation, Nov 4, 2019
Slide 1: Storing vital products with care
Storing vital products with care 4 November 2019 Vopak Q3 2019 Interim Update – Analyst Presentation Gerard Paulides - CFO of Royal Vopak
Slide 2: Forward-looking statement
Forward-looking statement This presentation contains ‘forward-looking statements’, based on currently available plans and forecasts. By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the
Slide 3: Q3 Key messages
Q3 Key messages Robust financial performance Significant increase in earnings per share Delivery on Vopak’s strategy with important steps in portfolio transformation LNG Colombia is 4th regas terminal in Vopak LNG portfolio New greenfield industrial terminal in Qinzhou, China Chemical capacity
Slide 4: Key figures YTD Q3 2019
SPEC LNG, Colombia Key figures YTD Q3 2019 EBITDA* CFFO (gross) EPS* In EUR million In EUR million In EUR 625 537 2.07 ROCE* Occupancy rate** Terminal network In percent In percent In million cbm 12.4 84 35.5 * Including net result from joint ventures and associates and excluding exceptional items *
Slide 5: YTD Q3 2019 vs YTD Q3 2018 EBITDA
YTD Q3 2019 vs YTD Q3 2018 EBITDA Pro forma EBITDA increased by EUR 35 million, reflecting good aggregate business performance 625.0 36.4 4.5 6.9 588.6 3.9 11.0 565.2 553.6 11.6 9.5 14.4 YTD Q3 FX-effect Adjusted Europe & Asia & Americas China & LNG Global pro forma IFRS 16 YTD Q3 2018 YTD Q3 Africa
Slide 6: Divisional segmentation
Divisional segmentation Europe & Africa and Asia & Middle East reflect temporary IMO conversion; Americas and LNG benefit from strong chemical and gas markets Europe & Africa Asia & Middle East Americas 86 85 84 85 85 92 92 82 83 80 89 89 89 91 71 77.2 70.3 73.6 76.2 72.8 59.6 65.9 77.5 66.9 66.3 39
Slide 7: Q3 2019 vs Q2 2019 EBITDA
Q3 2019 vs Q2 2019 EBITDA Positive new business contributions, planned temporary conversion activities related to IMO 2020 and divisional one-off items 208.0 207.9 0.1 3.3 0.8 0.4 1.2 2.5 0.5 202.4 Q2 2019 FX-effect Adjusted Europe & China & Asia & Americas LNG Global Q3 2019 Q2 2019 Africa North As
Slide 8: Global fuel oil network
Global fuel oil network Most of the fuel oil capacity conversions for IMO 2020 bunker fuels have been delivered and support revenues as from Q4 2019 Fuel Oil capacity Rotterdam Algeciras IMO ready 10% ~35% ~3.5m cbm Los Angeles Held for sale 15% 45% 55% Singapore ~65% 45% Panama 30% Delivering capac
Slide 9: Occupancy rate developments
Occupancy rate developments YTD occupancy rate reflects high out-of-service capacity; IMO 2020 conversion impact is approximately 4-5% in Q3 Occupancy rate* In percent FY 86% YTD 84% 90-95% 85-90% 87 85 86 85 86 84 82 IMO out-of-service capacity 2010 2011 2012 2013 2014 2015 2016 2017 Q1 Q2 Q3 Q4 Q1
Slide 10: Cash flow overview
Cash flow overview Investment momentum driven by growth project phasing towards 2019 YTD Q3 2019 YTD Q3 2018 In EUR million In EUR million 427 537 565 488 497 459 49 381 38 206 180 37 282 39 279 206 100 10 CFFO* Tax & other CFFO Sustaining, FCF Divestments Growth Other Free Cash CFFO* Tax & other CF
Slide 11: Investment phasing
Investment phasing Balanced approach for growth, sustaining, service improvement and IT investments Investments 2017-2019 Investments Investments In EUR million In EUR million Growth investments with clear New return criteria based on future projects* cash flow and risk profile Growth ~1bn investm
Slide 12: Portfolio transformation
Portfolio transformation Shift towards industrial terminals, chemical and gas terminals Key projects Proportionate revenue per product ~10% ~10% Gas • SPEC LNG - Colombia ~15% 10-15% 20-25% terminals • EETPL LNG - Pakistan 25-30% Gas terminals • RIPET LPG - Canada 35-40% 25-30% Industrial terminals
Slide 13: Q3 Portfolio highlights
Q3 Portfolio highlights SPEC LNG - Colombia Qinzhou - China Tianjin Lingang 375,000 cbm Caojing 467,000 cbm Qinzhou 290,000 cbm Haiteng 896,000 cbm LNG import facility acquired in September Greenfield industrial terminal for chemical products Vopak global LNG portfolio: 4 operational terminals
Slide 14: Non-IFRS proportionate information
Non-IFRS proportionate information EBITDA Occupancy rate Maintenance, Service In EUR million In percent & IT Capex IFRS BASED In EUR million 571 554 589 90 86 84 180 206 161 Non-IFRS proportionate YTD Q3 YTD Q3 Pro forma YTD Q3 YTD Q3 YTD Q3 YTD Q3 YTD Q3 YTD Q3 information provides 2017 2018 YTD Q3
Slide 15: Q3 Key messages
Q3 Key messages Robust financial performance Significant increase in earnings per share Delivery on Vopak’s strategy with important steps in portfolio transformation LNG Colombia is 4th regas terminal in Vopak LNG portfolio New greenfield industrial terminal in Qinzhou, China Chemical capacity
Slide 16: Looking ahead
Looking ahead Most of the fuel oil capacity conversions for the IMO 2020 bunker fuel regulations have been delivered and will support revenues as from Q4 2019 The targeted cost level of EUR 676 million for 2019, as communicated in Q2 2018 and subject to currency exchange movements, is expected t
Slide 17: Questions & Answers
Storing vital products with care Vopak Q3 2019 Questions & interim update Answers
Slide 18: Vopak Q3 2019 interim update
For more information please contact: Upcoming events: Investor Relations contact: Publication of 2019 full-year results Laurens de Graaf, Head of Investor Relations 12 February 2020 Telephone: +31 (0)10 400 2776 e-mail: investor.relations@vopak.com Publication of Q1 2019 interim update 21 April 2020
Slide 19: Europe & Africa developments
Europe & Africa developments Storage capacity Occupancy rate* Revenues* In million cbm In percent In EUR million 1.3 Total Q3 2019 86 85 82 83 84 155.8 158.2 153.8 151.9 152.7 10.8 million cbm Subsidiaries 9.5 Joint ventures & associates Operatorship Q3 Q4 Q1 Q2 Q3 Q3 Q4 Q1 Q2 Q3 2018 2018 2019 2019
Slide 20: Asia & Middle East developments
Asia & Middle East developments Storage capacity Occupancy rate* Revenues* In million cbm In percent In EUR million Total Q3 2019 92 84.5 3.3 85 85 80 77.2 79.1 76.5 4.2 15.1 million cbm 71 70.6 Subsidiaries Joint ventures & associates 7.6 Operatorship Q3 Q4 Q1 Q2 Q3 Q3 Q4 Q1 Q2 Q3 2018 2018 2019 20
Slide 21: China & North Asia developments
China & North Asia developments Storage capacity Occupancy rate* Revenues* In million cbm In percent In EUR million Total Q3 2019 83 79 0.8 73 73 73 4.2 million cbm 10.5 9.8 9.7 7.9 8.3 Subsidiaries 3.4 Joint ventures & associates Operatorship Q3 Q4 Q1 Q2 Q3 Q3 Q4 Q1 Q2 Q3 2018 2018 2019 2019 2019 2
Slide 22: Americas developments
Americas developments Storage capacity Occupancy rate* Revenues* In million cbm In percent In EUR million Total Q3 2019 89 89 89 91 92 79.3 75.6 77.0 0.2 0.5 4.2 million cbm 70.3 71.1 Subsidiaries 3.5 Joint ventures & associates Operatorship Q3 Q4 Q1 Q2 Q3 Q3 Q4 Q1 Q2 Q3 2018 2018 2019 2019 2019 201
Slide 23: JVs & associates developments
JVs & associates developments Net result JVs and associates* Europe & Africa* Asia & Middle East* In EUR million In EUR million In EUR million 46.8 40.3 37.7 36.6 22.9 26.9 19.8 16.0 10.7 6.6 0.6 0.7 0.6 0.6 0.4 Q3 Q4 Q1 Q2 Q3 Q3 Q4 Q1 Q2 Q3 Q3 Q4 Q1 Q2 Q3 2018 2018 2019 2019 2019 2018 2018 2019 201
Slide 24: Project timelines
Project timelines Vopak’s Capacity Country Terminal ownership Products (cbm) 2017 2018 2019 2020 2021 2022 Growth projects per 4 November 2019 Existing terminals Malaysia Pengerang Independent Terminals (PITSB) 44.1% Oil products 430,000 Brazil Alemoa 100% Chemicals 106,000 Singapore Sebarok 69.5% O
Slide 25: IFRS 16 Leases
IFRS 16 Leases Significant impact from long-term land leases IFRS 16 Leases Impact Vopak No economic impact on the business and how we Key figures* In EUR million manage it, accounting change only EBITDA 40 – 50 Net profit 0 – (10) Sizeable portfolio of long-term land leases IFRS 16 Lease liabil
Slide 26: Growth investments
Growth investments Shift towards industrial terminals, chemical and gas terminals Botlek Vlissingen Vietnam RIPET 63,000 cbm Deer Park 9,200 cbm German LNG 96,000 cbm* Qinzhou 20,000 cbm 33,000 cbm Antwerp PT2SB Altamira Open season completed 290,000 cbm Veracruz EETPL 50,000 cbm 1,496,000 cbm* 40,0